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tv   Lunch Money  Bloomberg  January 13, 2014 7:00pm-8:01pm EST

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>> welcome to "lunch money." let's take a look at the menu in motors. we will road trip to detroit. a ford 150 in aluminum? a ceo, dealmaker jimmy lee opens up on how he got where he is in his career, part of a weeklong series here on bloomberg. a tribute to the former israeli prime minister laid to rest. finally, more than just the words. golden globes, they had it all last night. we will have fun with that. kicking it off, two the names in
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headlines over the weekend and over the past few days. chris christie. very different situations. answer to the question everybody is wondering, are these guys telling the truth? we will start with a-rod. he will set out the entire 2014 major baseball league season. over the weekend, rodriguez cut suspension on repeal. the suspension for violating the performance enhancing drugs -- >> he was the pelt on the wall. they went so hard, they are paying for cooperation. they wanted to make an example of this guy who went to such lengths to lie to major league
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baseball. let's see if it permeates the rest. >> rodriguez says he will fight the decision in federal court. he said the evidence was not put in front of a fair and impartial jury. chances are slim but we know the yankees do not have to pay the $25 million salary for the season. >> a-rod has underperformed in the last several years. the highest-paid player in baseball. if they could get rid of that salary, they would want nothing more. it gives him enough relief to get under the luxury tax. now they can go out and add another pitcher they're going after without having to pay the luxury tax. this is the best thing that could've happened to the new york yankees. >> any chance the yankees will get relief beyond the 160 two games? >> no. this is it.
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>> let's say he comes at the end of next season and he is not healthy and his hip is bothering him. >> insurance would pick up the rest. should he retire because of injury, then insurance would pick up a good portion of his contract and the yankees would not have to worry about what we would do. >> the other public figure also facing questions about what he knew and when, chris christie, under pressure to disclose the scope of his it ministration's involvement in the four-day traffic jams the mill suggests are politically motivated. he will have to face crucial tests over the next several days. he delivers the state of the state address tomorrow. thursday, the democratic led assembly holds to assemble its investigation. he did actually get support on talk shows. >> he says he did not realize and he did not know. he it is -- it is pretty
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credible he would not make this blanket denial. >> he stood there for 100 and 11 minutes in an open dialogue with the press. only if barack obama and hillary clinton would give us 111 seconds of that would we find out some things we would want to find out about obamacare and benghazi and the irs. >> that is what people say in front of the tv cameras. the word behind-the-scenes? >> it is fascinating to me. watching cable tv and reading papers, it is fascinating how much caveat in there is. in private conversations, and this is the dirty little secret. i have not had a private conversation with any elected official since this became a big deal in which they can -- they said to me how dare you.
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everyone of them says, it would not surprise me. he better hope he was not involved and if he was, he better hope it does not come up. >> still skepticism a leader just would not have known. collect the skepticism comes not from his performance. skepticism about the chronology. certain ailments of the chronology make people wonder, how could that be. how could this small group of relatively junior people take it upon themselves to do such a thing without telling the boss? people know chris christie. as john and i make clear, he is a tough. -- tough guy who does they and his way. is it impossible he knew about such a thing? no one thinks it is impossible. he denied it. that performance gives him the ability now to say, "i have shown accountability and gotten rid of people close to me, and to try to move on. >> a very big part of getting ahead. dues and do not all week on "lunch money." and for pushing boundaries.
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the detroit auto show is coming up and motors next. a massive protest in bangkok. they are trying to shut down the city. the demonstrators want time with the prime minister to reform the country's legal system. here it is. [speaking another language] ♪
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>> and motors, the detroit road trip, the city going through a hard time. the north american international auto show is still be auto event of the year. before we go there, a little bit of business we have to kick take care of -- to take care of. >> we are happy. he has been terrific and a great ceo. gets the conversation off the table. >> yes, alan staying on as the ceo for ford. it can now get on with selling cars. that is what they have got to do. the 50th anniversary of the mustang. >> the mustang is the quintessential ford car. i have way too many of them. i have taken a personal interest in every mustang i have come out with since i joined the company. i was in europe for so long and you could not buy a mustang over there. i never understood why not because everyone loves them there. you will now sell this worldwide
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right when your biggest competitor comes out of europe. you're going in there without -- all of the products you want. what does that mean for ford? >> our products we sell everywhere. what is cool about mustang is is it -- it is billed for the roads. the acceleration and the balance of the car, the europeans will love it. i was introduced in barcelona. we have a right-hand driver. it means we can sell it in the u.k. and other places that have right-hand drives. it will be a world car. you mentioned you cannot get them before. dealers used to gray market them in because they wanted him so badly. >> another headline grabber. ford unveiling its new pickup. this thing is made almost entirely of aluminum and not steal. >> this is a big departure.
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aluminum body, military grade aluminum. everybody knows that will take a lot of weight out. you will get much better fuel economy. what people are missing is the capability of this truck is greatly enhanced. >> a big risk redefining the best-selling vehicle. >> i do not think so. with my background, it is the next material for the automobile industry. the neatest thing is the pricing of the aluminum. we will now put this on our most successful be at -- vehicle. how for pound, aluminum is stronger than steel. all that capability is captured, the light weight of the engine the downside -- downsizing. this will be tremendously appreciated by ford customers. >> he puts such a huge importance on the ecosystem and the environment and a fuel
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efficiency. he said we still have the power, the big truck power here. will we see a v-8 here? can you do it with the v6? >> that is part of our durability testing. the mining industry and the construction just to do what we do. to make sure it is an improvement in the toughness. about the engine, we will offer four engines now. two ego boost engines. >> you raised this truck in the baja without telling anybody. >> it did really well. that will be a v6. we will have a v6 and a five liter v-8. the fuel economy and the responsiveness that goes with those engines now, with a lightweight vehicle, the response time and handling will be a tremendous improvement. >> a competitor i will not name put out a knit and -- midsize truck. do you feel the need to go there
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or does it cover all of those basis? >> we believe it covers all of those for consumers. we have them in all the different price ranges so they can get the capability. also, this small segment has got to be a small segment. it is taking over. >> no new ford ranger? >> we have a ford ranger, and number one smaller pickup around the world. that market will change and started about again. we will have that vehicle here immediately. >> the competitor was gm motors. >> we are about 200 pound lighter than f1 50 today. if you look at better fuel economy and you look at where we are today and what happens in the future on a regulatory basis, we do not want to offer a cure to midsize truck.
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that was a formula a lot of people tried to make work. last night, we have got a four- cylinder that makes 193 horsepower. we have got a turbo diesel yes turbodiesel. those are six with over 300 horsepower. this truck will be the quietest in segment. it will be the most beautiful in segment. we have lineups we are frankly not putting in our big trucks. it is a different value equation and different capability equation. it is a different operational cost the nation people will really be interested in and it will cost less. not everybody needs a full-size silverado everyday. >> what people do want is wi-fi. he will offer mobile hotspots in many new cars. that means you will have web
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service wherever your cargoes. >> we have been in the business for 17 years now. to put this pipe in the card to enable people to do things create a mobile hotspot in the car and use the technology, it is really a great thing for everybody in the car. from voice recognition and being able to voice command and use the clout and use onstar from a safety standpoint, we really take care of our customers with onstar in terms of safety and simple things like my kids having flat tires. that type of 4g is a huge enabler. >> ford will introduce 23 new models this year. that is double last year cost a total. the profit forecast was lowered 12%. >> is because we are investing more on new products and new production. the neatest thing about our plan is profitable growth over the long term for everybody.
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this year happens to be our most aggressive launches. we will launch 23 new vehicles in 2014 and we are also it banning our production capability. td -- two new plants and one in brazil. we are also increasing our production and a lot of investment this year and we will continue to deliver profitable growth over a long time. a really strong year. >> you had a record year in china and putting in new factory all over the place in europe. will that continue? that kind of hiring? >> we are hiring a 11,000 new employees. 5000 in the united states. to your point, this is increasing production so we can continue to serve the complete family of vehicles. >> we will have more coming up.
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the man in charge of mercedes will join us from the show room floor. here is something. trucks on the slopes. how cool is that? he is jumping. ♪
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>> secrets of success. betty liu is out with her new book "work smart."
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>> number one is you have to work hard. there is just no getting away from that. number two is you have to prepare like crazy. you have got to be organized and make lists and be super prepared. i am a huge believer in proper prior preparation prevents poor performance. this probably sounds counterintuitive to the first and maybe even the second. your family has to come first. whenever i give speeches on this topic, people say, how can your family come first if you have to work all the time? if you are hard -- highly organized, you can do it. put the kids school play on the calendar and the soccer schedule, whatever it turns out to be, and treat those sessions like it was a meeting. one of the things about dealmaking is reparation. going into the meeting with the
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board and the ceo, really knowing your stuff, is critical. what would i tell my 25-year-old self? grow a through more -- a few more inches and gain a few more pounds and try to make it to the nfl. >> what sets successful executives apart? >> they find balance and manage their time. the most important thing seems to be in a matter what they are doing over there with, that seems most important thing. that is why you can be with your family and should be with your family and they love it. that is why when you're in the boardroom, everyone thinks that is all you're concerned about. that is why when you're on the golf course, that is the only thing that matters. it is that precision and focus in the moment. >> to be highly organized. let's talk about some of the top headlines trending over the past week. i thought this was an interesting article. spelling mistakes. that e-mail etiquette can actually help you get ahead. >> here is why.
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mark zuckerberg says, you're a cool dude and i will see you sunday. very casual. >> buyer company one day. >> instead of blacking out and then asking people what the proper form of "dear sir" and all of the stuff, he writes back a casual, "hey, when i am town i will hook you up. a lot of people were taken aback by that casual. it is not the proper form when you are speaking to someone who is superior, but that is the point. if you do not speak to someone as a superior, you equalize yourself and put that person at ease and there is a connection. >> interesting. the number one article, which i thought was also fascinating what bosses should not be asking employees to do.
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but would that be? >> a lot of that drive employees crazy like, we are all going out after work, you should really come. here is my favorite charity and you should donate their. evaluate your peer and yourself. this is really big. evaluate me. kicked me under the table if i am going to long in a meeting. do not ask people to do things you would not do yourself. go out there and unload the truck with people so they know how important these things are. some of these things are nonsense goal -- nonsensical. >> all week, we will have more from interviews with global leaders, how to get ahead. i learned a lot. from one leader to another israel says goodbye to the former prime minister next in
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world. plus, prescription for luxury. the mercedes chairman from the detroit auto sure -- show. ♪
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>> this is "lunch money." today's moving picture, where the video is the story. a fire has destroyed most of an ancient town thought to be the answer -- inspiration for the mythical shangri-la. that is paradise and -- paradise. over 200 homes have been destroyed, sadly. an incredible video. in ukraine, and opposition leader was seriously injured. oh tests have become more violent recently. citizens have been fighting the president posses decision to forge a trade deal with russia rather than europe.
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how is this for delivery? a rocket carrying supplies at the international space station. a mechanical arm was used to grab the cargo carrier. mass so -- nasa is paying $3.5 billion to deliver cargo. israel laid to rest his former prime minister today. he suffered a stroke in january 2006. he had been in a coma ever since. a controversial figure, the former prime minister drew praise from israelis, respect from world leaders and scorn from arabs who regarded him -- >> he led a life of two half. the war of independence hero whose troops help the sinai of
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egypt. the maverick would change the course in 1973, and the nationalist champion who built dozens of settlements that were essential for security. most notoriously, there was 1982. the massacre, during the invasion of lebanon. as a defense minister, he had indirect responsibility. as opposition leader coming paid a visit to a disputed jurors along shrine. with peace talks collapsing, this sparked violent protests. they morphed into an uprising. curing for a tough response, he was elected prime minister four month later and this is where
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the second life begins. in 2003, he etc. president bush's roadmap for peace. >> israel seeks peace with all its arab neighbors. >> he was later unilaterally evacuated israelis from the gaza strip, handing it over to the palestinians. nicknamed the bulldozer was now hailed a peacemaker. he formed a party to push people forward. in 2006, two months before election, he suffered the second of two strokes and spent the rest of his controversial life in a coma. >> joe biden was among the four in dignitaries. >> when a close-knit country like israel, a country that has been tested as much as israel, loses a man like the prime minister, it does not just feel like a leader. it feels like a death in the family.
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>> tony blair was also among the dignitaries attending the memorial. the chairman joins us from the detroit auto show next. it is also the first on bloomberg. ?
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>> this is "lunch money." we are also streaming live. we have gotten something special for you. matt miller is on the detroit auto show with the man on mercedes, ceo of diamond and the first on bloomberg interview. >> just stick with dr. z, very difficult for most americans to announce. we are glad to have you with us. it is difficult to pronounce your last name but they are making your cars. tell us about that. click that is true. in 20 years, we are running for trucks and we are happy to with the quality and the dedication
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of the folks there. it is therefore a great place to have the mercedes cornerstone. >> i wonder how much that has to do with great sales that you had in 2013. i was shopping for an suv and i walked into the store and each and every car and suv in there has a placard saying exactly where it is made and where the parts are from. it seems to be the best strategy have ever heard of. >> on the one end, the business is global. people do not care too much about it anymore. still, even though it is a truly german product, we use it. >> you are selling a lot more of the smaller and sportier cars. i know a lot of guys from silicon valley, they made their first million and they have got their own business but they are 26 years old.
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how important is that to your strategy e >> extremely important. doing exactly what we were hoping for. we are selling now with 83% of conquest. that is an unheard rate. we clearly are gaining new customers. we traditionally have the highest lows of all grants. if we imagine all these customers will stay with us -- >> it is a gateway drug. when they have their kids, they get to the class. they get older and they have a chauffeur. classical -- >> people are camping outside and waiting it debt for it to be delivered. >> one of the huge trends of this show seems to be technology.
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you have been lauded. your -- is the most technologically advanced luxury car on the road. does it trickle down as well? >> almost all the new technologies, eight months ago for the first time, now available, including driving a production car. no one else's offering that at that point in time. we are here ahead of time. we have 100 engineers sitting in palo alto for decades, being part of the community there and therefore helping us to be at the forefront of this technology. >> the heart of silicon valley. let me ask you about your successful sales year in the u.s.. you regret -- regained the top spot in 2013. number one is not a bad place to be. how important is it to hold onto
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that? >> to create a product, and then the number of sales, it is not our primary goal, but we like when it is getting or coming there, but we will not get desperate in 2014. we have a good chance to stay there, but if not, we move on. >> how do you feel about 2014? the u.s. auto market has been on an incredible run. europe has been an incredible slump here it is there a little turnaround on both sides of the momentum in the u.s. continuing, and we see $4 million in 2014, another five percent up, in europe, we see the end of the downturn at a very slow slide. recovery is won or two percent this year. asia, still more momentum. a little slower than it used to be.
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altogether, we expect something in the vicinity of five percent. >> do you see the recovery in europe in any way following the recovery we had in the u.s.? will we see a big pickup in 2015? >> at the one end, the global economy has opened and everything depends on everything. on the other hand, we have very specific issues in europe with the euro. we are starting to overcome the challenges. we benefit on the one hand especially in germany, from recovery in other places. we create our own momentum in europe. i do not think it will be following in the sense of inclinations. but certainly in 2015, it would better than 2014. 2014 is already better than it was. >> it is hard to look out and even economists have trouble looking past the next month. let me bring it back to the u.s.
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here. finally, tuscaloosa, we talk about that is where you are building these. you have been hiring more workers. do you continue to build on your workforce here in the u.s.? can you build globally as well? >> we are adding. there will be another product build intense goes up. -- tuscaloosa. altogether, our efficiency is going up. our productivity is going up. so even though we are growing very fast, more than 10%, our employment was able -- stable. we grow outside of germany. all the growth comes from other places. >> excellent. i have got business questions done within i can spend some time checking out these products. thank you so much. we appreciate your time. back to you in new york.
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>> matt, thank you. coming up, winners from last night's golden globe awards. plus, a little heat from cohosts next. we will have some more fun with matt at the detroit motto show all day on blaber television. that is cool stuff. -- detroit auto show all day on bloomberg television. that is cool stuff. ♪
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>> the fed -- 71st annual golden globe awards posted by tina fey. no one was considered safe from these two. >> a very good evening to everyone here in the room and all the women and gay men watching at home. [applause] >> so brilliant, proving there
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are still great parts in hollywood for meryl streep over 60. matthew mcconaughey did amazing work this year for his role in dallas buyers club, he lost 45 pounds or, being in a movie -- or what actresses called "being in a movie. >> that is great. robin wright accepted the award as best actress in a tv drama for her role in "house of cards or co- -- cards." >> "house of cards post quote an "orange is the new black." netflix will not feel so smug when snatch that is appear in a few years excepting west drama. -- asked drama -- accepting best drama.
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>> "gravity" is nominated for best film. it is the story of how george clooney would rather float away into space and i then spend one more minute with a woman his own age. [laughter] [applause] >> fashion is always a big part of the golden globes. if you like what you saw, we have got an app or you. you snap and search and then you get to buy. the cofounders explain how it works.
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>> developing the technology now for about six years. we're basing the university in ireland. i did a phd in this area. i have worked in the recognition stage -- and were looking to commercialize the technology. it seems like a great opportunity. >> you are here, the retail side of the equation. how will you commercialize the app? >> there are a lot of different ways we commercialize the app itself. as far as retailers, it is a highly valuable field because it solves a huge problem for retailers. the problem is money ok to pacific league. for these people additionally native, the way they actually are shopping is fundamentally different than before. that is a big problem for retailers. at the heart of this disruption is the mobile phone. our technology is exciting and engaging and novel.
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it is something millennial kids will engage with. we can push that forward with retailers. >> so everybody has a shop in their pocket. >> that is what it is. whether you are reading a magazine or on the street, we turn this into the shopping experience. if you like her dress or shoes we will bring back a range of products. >> what is adequate -- etiquette surrounding this? you take a photo of someone and you like their close, you want to find out where they bought them. i guess we will find out. you were in london trying to get more interest. >> we just released. last month, we had tens of thousands of downloads. an incredible amount of interest for not only retailers but users as well. >> what is so unique about yours compared to the competition?
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>> our products, we are confident the technology itself is state-of-the-art. we are very confident we have been developing it for so long and we are very confident technology is superior than anything out there. >> who makes and pays the money in the whole process? >> the most important point is that it is free for people downloading. this can be downloaded in the apple and ios store. we generate our revenue from the retailers themselves. it is free and we very often get a lot of discounts from the retailer so it is cheaper to buy this. >> today's mystery meat is pants optional. here is the view. ♪
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bloomberg television is on the market. let's get you caught up. we are looking across the board with the s&p pushing its biggest loss in two months. this is a key concern.
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we have shares of microsoft between 2% and 3%. i am joined by a wells fargo fund manager. today we saw the s&p have a new low for years. is there a concern about where stocks go from here? is that driving negative sentiment? >> people are talking about violations being too high. i am of the opinion that valuations are fair. you will have some stocks that are undervalued and some that are overvalued. there's nothing annual -- unusual. if you think about how things flow too many people are focused on that. >> we are going into earnings here. we saw a couple of big decliners on the basis of disappointing
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outlooks. what is your advice on what is ahead? >> i think we will see some winners and some losers during this earnings season. earnings season can be particularly volatile right now with the market valued where it is. i think perhaps over the next few weeks, as the work our way there earnings season, we can see some choppy trading. on average it may not look like the market is going anywhere. if you are focusing on the fundamentals of looking for the top line revenue growers i think those are the ones that will continue to outperform. >> you are bullish on u.s. stocks. you see greater growth abroad. a lot of people had a rough ride. he said that is the place to be. >> because everybody has had such a rough ride. a lot of people i talked to were bullish on the market. 2012 was not all that good. i think a lot of people have given up on the emerging markets. they have seen so many different problems.
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when you think about the bricks, i think a lot of those countries can continue to underperform except for perhaps the last two india and china. india and china, because some of the structural reforms that are taking place, we should be a little more excited about the long-term growth prospects. >> you through mexico in there as well. >> the structural reforms are phenomenal. they will inure to the benefit of businesses that are penetrating the oil market their. >> was quickly get back to u.s. stocks. negative sentiment is already priced in. some are worried they are not priced enough. >> if you feel you're not exposed enough, try to work with someone to set up a strategic allocation. in this environment, my favorite growth overvalued.
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-- i favor growth overvalued. to me people are concerned that interest rates will pop somehow. i think the fed is going to means easy as she goes. we could see fixed income. >> thank you very much. brian jacobson with wells fargo management. i am soon keen and on the market." ♪
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